Varvatos plans boutique at former Gino's site

(Crain's) -- Upscale menswear designer John Varvatos has signed a letter of intent to open a boutique in a new building that would replace a shuttered Gino's pizzeria on Rush Street.

The edgy designer known for his laceless Converse sneakers would lease about 6,000 square feet in a low-rise building to be developed at 930 N. Rush St., according to sources familiar with the deal. Chicago real estate investor Fred Latsko has a contract to buy the site for roughly $8 million.

John Varvatos Enterprises Inc., which also sells its clothes in department stores, plans to increase its number of boutiques to nine nationwide, from five last year. In April, the company opened its second New York store in the former home of CBGB, a famed punk-rock nightclub in New York. A spokeswoman for Varvatos' parent company, Greensboro, N.C.-based VF Corp., could not be reached for comment.

Mr. Latsko, a principal in Structured Management Midwest LLC, declines to comment. 930 N. Rush is owned by a venture managed by pizza restaurant operator Francesco Inserra, who owned the closed Gino's. An attorney for Mr. Inserra did not respond to a message requesting comment.

Meanwhile, an affiliate of developer M Development LLC bought 1003 N. Rush St. last week for about $9 million, sources say.

Fine jeweler Geneva Seal Inc. occupies the first floor of the three-story structure under a lease that began about five years ago. The building is just north of the flagship Prada store, 30 E. Oak St., on the northeast corner of Rush and Oak streets.

Dan Moon, managing director of Chicago-based brokerage Moon LLC, which arranged the transaction, said the sale closed last Wednesday, but he declined to identify the buyer or confirm the price. Pamela Farley, a member of the family that owned 1003 N. Rush, says she was pleased with the transaction, but she declined further comment.

Mark Hunt of Chicago-based M Development did not return an e-mail message requesting comment.

In October, another M Development venture bought 1009-11 N. Rush St. in an $8.5-million deal.

The two parcels acquired by M Development are separated by 1007 N. Rush St., which is home to well-known watering holes Jilly's Piano Bar and the Back Room. That building was purchased In June 2007 by a venture managed by Grace Sergio of Chicago residential brokerage Sergio & Banks Realty at Work.